Is Your Home Becoming a Retirement Expense?

You paid off your house.

So why does it still feel expensive to live in?

For years, we’ve been told the same thing:

• Work hard.

• Pay off your mortgage.

• And your home will take care of you in retirement.

But more and more, we’re seeing something different.

Because once the mortgage is gone…the costs don’t disappear.

They morph.

The Part No One Talks About Your Home

A mortgage-free home feels like security.

But in retirement, your home can quietly become one of your largest ongoing expenses:

• Property taxes

• Maintenance

• Insurance

• Repairs

• Utilities

On a recent episode of More Than Money, Alex Bierman, a Researcher at the University of Calgary said “owning your home outright does not mean you’re financially secure in retirement anymore.”

And here’s the part that catches people off guard:

Those costs don’t stay flat.

They tend to rise.

At the same time your income becomes more fixed.

Asset-Rich. Cash-Flow Tight.

We see this often.

Someone has built a strong net worth and their home has appreciated.

On paper, they look like they’re in a great position.

But month to month?

It feels tighter than expected.

Because your net worth doesn’t fund your lifestyle.

Your income does.

And if your home is absorbing more of that income each year, it starts to cut into your flexibility.

When Your Biggest Asset Becomes a Constraint

This is where the conversation changes.

Your home used to represent:

• Growth

• Stability

• Long-term value

But in retirement, it can also represent:

• reduced flexibility

• ongoing cost

• Illiquidity

Alex Bierman also mentioned” People aren’t just facing higher costs. They’re facing costs they couldn’t have planned for.”

If you’re not aware of how your house fits into your retirement plan and it’s eating away at your income from inside, then the role of your home needs to change.

This Isn’t About Selling

Most people don’t want to move.

And that’s understandable.

There’s history, comfort and familiarity with your home.

This isn’t about telling you to sell or downsize.

It’s about asking a better question:

Is your home supporting your retirement… or hindering it?

The Trade-Off No One Prepares You For

There are always trade-offs:

Stay:

• comfort and familiarity

• but rising costs

Downsize:

• lower expenses

• but a lifestyle shift

Relocate:

• potential savings

• but distance from what’s familiar

There’s no universal answer.

But there is a decision to be made.

Because if your worth is tied up in your house, it’s just a matter of time. 

In the same episode, David Popowich mentioned “You may not know what will break, but you know something will. That’s the cost most people forget to plan for.”

The Question That Matters for Your Home

Instead of asking:

“How much is my home worth?”

Start asking:

• “What does it cost me to live here every year?”

• “How does that cost change over time?”

• “What flexibility does this give me if something shifts?”

Because retirement planning isn’t just about what you own.

It’s about what it costs you to live.

Final Thought

Your home doesn’t just sit in your net worth.

It shapes your retirement.

And the earlier you understand that,

the more control you have over what comes next.

At PKAG, we help Canadians build retirement plans that gives you flexibility when life shifts at the same time.

If you have any questions, feel free to contact us.

You can also book a meeting with us and we can go over it in person.

We also have free, no-obligation seminars where we'll discuss AI, tax strategy, and how to stay in control of your retirement plan.

We look forward to hearing from you.

This commentary is intended to provide general information and should not be construed as tax, legal, financial, or other advice. Individual circumstances and current events are critical to sound planning; anyone wishing to act on the information presented should consult with his or her tax, legal or financial advisor.

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change. David Popowich, Faisal Karmali, Leanna Wachniak, Robert Gerrie are Investment Advisors with CIBC Wood Gundy in Calgary. 

The views of David Popowich, Faisal Karmali, Leanna Wachniak, Robert Gerrie do not necessarily reflect those of CIBC World Markets Inc. CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc.